[Click eStock] "Incross, Beneficiary of Wave's Introduction of Advertising Rate Plans"

[Asia Economy Reporter Ji Yeon-jin] IBK Investment & Securities identified Incross as a beneficiary of the advertising rate plan for the video streaming service (OTT) Wave, recommending a buy rating with a target price of 24,000 KRW on the 15th.

Researcher Chae Yoon-seok of IBK Investment & Securities stated, "With Wave, which broadcasts live programs such as terrestrial and comprehensive programming channels, home shopping, dramas, and entertainment, adopting an AVOD model, a significant shift in the advertising market is expected. We anticipate that Incross, currently selling advertising products for Wave's live channels, will be the primary beneficiary."

He explained that the introduction of Netflix's advertising rate plan is expected to bring changes to the domestic OTT industry, which has so far focused solely on subscription-based models (SVOD). Currently, the domestic OTT market is competing through rate plan promotions, content acquisition, and mergers among foreign OTTs like Netflix and Disney+, and domestic OTTs such as Wave, TVING, Coupang Play, and Season.

Wave announced a content investment of 1 trillion KRW by 2025. Recently, Wave posted operating revenue of 230.1 billion KRW and an operating loss of 55.8 billion KRW. Considering the pricing level of the rate plans, Researcher Chae stated that the introduction of Wave's advertising rate plan is expected to be a natural step.

Incross's third-quarter operating results showed sales of 13.9 billion KRW, a 6.6% increase compared to the same period last year, and operating profit of 6.0 billion KRW, a 0.9% increase.